Petronas to grow non-fuel contribution to downstream business

KUALA LUMPUR — Jan. 5, 2018: Petronas is looking to increase the non-fuel segment’s contribution to its downstream business this year, in line with most oil and gas companies worldwide.

The segment’s contribution in this regard currently stands at 10 per cent.

“Everywhere in the world, in downstream retailing, people are already doing that, such as Shell, Esso and BP. We are trying to learn and we have done some (of that) here in Malaysia and it’s showing good success.

“Based on that lesson learned and experience, we want to expand that contribution and we are going to do it smartly. It will require some time but we do have plans,” said Petronas vice-president of marketing downstream, Datuk Seri Syed Zainal Abidin Syed Mohd. Tahir after a Petronas Dagangan prize presentation for its latest promotion campaign.

On the outlook for the downstream market this year, Syed Zainal Abidin said it was projected to remain competitive as demand was expected to be subdued as more people shift towards public transportation.

“Last year, the MRT came into play, so generally people tend to leave their cars in the suburbs and take the train to the city, thus cutting back on their overall long-distance travelling. This has impacted the oil and gas industry particularly the retail sector, and we believe this trend will continue this year.

“Cars nowadays (also) become more efficient such as electric vehicles and energy-efficient vehicles, which means fuel consumption will be lower,” he said.

As a company, Syed Zainal Abidin said Petronas is now looking at different marketing and advertising programmes to ensure that demand can be sustained. — Bernama